NFT marketplace X2Y2, once a prominent player in the industry, has announced its closure after experiencing a significant decline in trading volume. The platform, which was launched as an alternative to OpenSea and LooksRare, will shut down on April 30, citing a 90% decrease in trading activity and the challenges of remaining competitive in the market.
In a statement released on March 31, the project’s founder, known only as TP, expressed the decision to “sunset X2Y2 as an NFT marketplace” after three years of operation. The founder highlighted the sharp decline in NFT trading volume since its peak in 2021 as a major factor in the decision. TP emphasized the importance of focusing on lasting value over chasing trends, leading to the definitive closure of X2Y2.
At its peak, X2Y2 reached $5.6 billion in all-time trading volume, making it the second-largest NFT marketplace behind OpenSea. However, the platform has since dwindled to $53.6 million in trading volume, according to data from Token Terminal. Despite the closure of the marketplace, X2Y2’s smart contracts will remain operational for users to interact with.
The announcement of X2Y2’s closure had an immediate impact on its native token, causing a 6.95% drop in value, as reported by crypto price aggregators. While the platform is shutting down its NFT marketplace, it is not completely exiting the crypto space. The team hinted at a pivot towards artificial intelligence (AI), describing it as “the biggest paradigm shift we’ll see in our lifetimes.” The team’s next project aims to leverage AI to generate yields in a permissionless manner, building on the lessons learned from the NFT chapter.
As X2Y2 prepares to transition into the realm of AI, the team acknowledged the potential impact on its token price, which was closely tied to the NFT vision. Despite the challenges ahead, the team remains optimistic about the future, emphasizing the importance of adapting to new technologies and opportunities in the ever-evolving crypto landscape.
Overall, the closure of X2Y2 marks the end of an era for the NFT marketplace, but also signals a new beginning as the platform sets its sights on exploring the potential of AI in the crypto space. The decision to pivot towards AI reflects the team’s commitment to innovation and staying ahead of the curve in a rapidly changing industry.